Singapore-based real estate company Ascendas-Singbridge, focused on urbanisation projects, has brought the island nation’s state investor Temasek Holdings as a principal investor for its Ascendas India Logistics Programme that aims to invest $300 million, the companies said.

The initiative will invest in projects in key warehousing and manufacturing hubs in Mumbai, Delhi-National Capital Region (NCR), Pune, Chennai, Bengaluru, and Ahmedabad. It targets to develop 13 to 15 million square feet (sq ft) of space. So far, it has two seed assets, with 1.25 million sq ft of operational space, and over 4 million sq ft in development potential.

Temasek’s entry into India’s booming warehousing space comes at a time when other global investors and pension funds are ramping up their presence in the segment. Last year, Canada Pension Plan Investment Board (CPPIB) struck a $1.2 billion deal with local developer IndoSpace for a platform and is actively adding muscle to its portfolio.

A lot of developers have also shown interest in building a portfolio of warehouses as the segment heats up with rising momentum in leasing and rentals. Embassy Industrial Parks, a joint venture of Embassy Group and Warburg Pincus with an investment of $250 million, has presence across Chakan-Pune, Bilaspur-Gurugram, Sriperumbudur-Chennai and Kolkata.

Promeet Ghosh, India managing director of Temasek, said the Singapore entity viewed the logistics and industrial sector as a good proxy for growing middle-income populations and transforming economies. “The positive momentum of the sector, underpinned by the government’s ‘Make in India’ vision as well as healthy consumption trends, presents opportunities for us to further invest in India’s continued growth,” he said. He added that Ascendas India Logistics Programme will help address the growing demand for logistics and industrial space, and provide companies with the support they need to scale up and succeed in India.

Underscoring the importance of the programme, Ascendas-Singbridge investment chief He Jihong said investments in high-quality logistics and industrial facilities were needed to support India’s economic growth, given the strong domestic consumption trends. “Singapore-based real estate company Ascendas-Singbridge has over 20 years of experience in India,” he added.